The company strives for steady progress, and the net profit of 23H1 homing increases by 16.53% compared with the same period last year. According to the semi-annual report released by the company, 23H1 achieved revenue of 6.77 billion yuan, an increase of 8.23% over the same period last year, a net profit of 971 million yuan, an increase of 16.53% over the same period last year, and a net profit of 931 million yuan, an increase of 6.10% over the same period last year. Of this total, Q2 realized revenue of 4.106 billion yuan, an increase of 6.52% over the same period last year, and a net profit of 623 million yuan, an increase of 10.70% over the same period last year.
23H1's overall gross profit margin was 41.41%, a year-on-year decrease of-2.41pct.
The publishing and distribution sector grew steadily. 1) Publishing sector: the revenue of 23H1 Publishing sector was 1.596 billion yuan, an increase of 9.63% over the same period last year. According to the company's semi-annual report citing open-book monitoring data, 23H1's share of the national comprehensive book retail market is 3.52%, up 0.4 pct from the same period last year, ranking second in the country. 2) issue plate:
Revenue from 23H1's distribution sector totaled 5.824 billion yuan, an increase of 13.06 percent over the same period last year. 23H1 Xinhua Bookstore in Hunan Province achieved revenue of 4.918 billion yuan, an increase of 13.01% over the same period last year, and net profit of 652 million yuan, an increase of 12.41% over the same period last year.
The company promotes the campus reading project, "four-dimensional reading" series of products sales revenue of 242 million yuan, efforts to do a good job in the distribution of political books, achieving sales revenue of 366 million yuan.
Pay attention to the digital transformation of the company. 1) Digital education section: central and South China Xunzhi strives to carry out education quality monitoring and examination services, taking test papers, teaching aids and other paper media as the flow entrance, focusing on building examination paper marking system, examination and evaluation system and other products. As of 23H1, the number of registered users of Xunzhi mobile applications in Central and South China exceeded 5.6 million, an increase of 350000 over the same period last year.
2) Financial investment sector: financial companies adhere to the positioning of service groups, make every effort to enhance synergy, strengthen the scientific allocation of funds, and maintain sound operation of various businesses. The Pofu Fund will strengthen project research, increase the post-investment management of the project, and achieve a net profit of 32.74 million yuan. With the steady progress of the Malanshan Park project of Central South Media, the investment promotion contract has been signed with the Management Committee of Malanshan (Changsha) Video Cultural Park, and most of the towers in the north and south have been capped.
The rate of R & D and management expenses decreased slightly. 23H1 has a monetary capital of 8.847 billion yuan, down 18.52% from the end of last year. The project under construction of the company increased by 70.22% at the end of last year, mainly due to the increase in project payment for the Malanshan video cultural and creative industrial park project. The company paid 493 million yuan in advance, an increase of 44.62% over the end of last year, mainly due to the increase in the purchase of prepaid paper, books and projects, as well as the increase in prepaid manuscript fees and printing fees. The company's sales expense rate was 14.28%, down 1.57 pct from the same period last year, mainly due to the company's adjustment of transportation expenses related to performance obligations to operating costs in accordance with the new revenue criteria. The company's R & D expenditure rate was 0.66%, down 0.29 pct from the same period last year, mainly due to the fact that some of the invested R & D projects have been completed one after another.
Profit forecast and valuation analysis. We use PE and PS valuation methods: 1) with reference to comparable companies, we give the company 14-18 times dynamic PE in 2023, corresponding to a reasonable value range of 13.16-16.92 yuan per share. 2) referring to the comparable company, we give the company 1.5-1.8 times dynamic PS in 2023, corresponding to the reasonable value range of 11.41-13.70 yuan per share. To sum up, we think that the corresponding reasonable value range of the company is 13.16-13.70 yuan per share, maintaining the company's "better than the market" rating.
Risk tips: digital transformation is not as expected, book consumption is not as expected, and the macro-economy is weak.